Hi Clueso I've been following Magellan for about 3 years. They have a number of different funds to choose from, with Magellan Global Fund (MGF) being their earliest and most famous product line. It performed brilliant over a long period and brought them fame far and wide.
I choose the Magellan High Conviction Trust (MHHT) which only invests in 8-12 of the best companies in the world as rated by Magellan research. Due to recent restructuring, the trust now trades at its full INAV AND its investments are now fully disclosed. Maybe check that one out. I am no expert on the MGF as I mainly follow MHHT.
But the main thing to realise is that you are buying a basket of highly rated international stocks and hiring Magellan to manage it for you. With Magellan Financial Group shares you are buying into the management company and their profit stream from those funds. For me its very interesting to debate the relative merits of which is the better investment but they are totally different in structure and nature - yet not unconnected.
Apart from Funds under Management (FUM), Magellan has the direct investments like Yum and GYG, Barrenjoey and new products like the innovative FuturePay superannuation product. Magellan are constantly leading the investment fund business model with new ideas. To my eye, these new products continue to improve the investor experience. Plenty of Magellan capital has been poured into these initiatives so they are constantly reinvesting in their future. Its very difficult to assess the future value of this moving feast. To be a Magellan investor, I think you have to watch all the Hamish Douglass videos and decide whether you understand and like the way he thinks. I have and I do.
MFG Price at posting:
$34.72 Sentiment: Buy Disclosure: Held
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